Originally published on: September 30, 2024
Decentralized finance (DeFi) protocol Onyx is bouncing back after a recent security breach cost them $3.8 million. The protocol, known for its Ethereum-based lending market, is making a strategic move to strengthen its governance by relaunching Onyx Core as a key product.
The Onyx Improvement Proposal “(OIP)-46: Relaunch Onyx Core” was swiftly introduced after the security exploit, proposing significant changes to the protocol. One of the major changes includes shutting down the Ethereum-based lending market and fully reimbursing lenders for their losses.
Community members quickly rallied behind the OIP-46 proposal, showing unanimous support for the changes. The proposal is scheduled to be implemented on Oct. 1, marking a new era for Onyx.
As part of the restructuring, Onyx Core will serve as a closed-ended lending protocol where users can wrap non-fungible tokens, real-world assets (RWA), and various crypto assets. This shift is aimed at fortifying the protocol against future attacks.
Following the breach, cybersecurity experts have been monitoring the DeFi space closely. According to reports, losses from crypto hacks have exceeded $2.1 billion in the first three quarters of 2024. With centralized finance operators being prime targets, it’s clear that security measures must be a top priority for all DeFi protocols.
By revamping Onyx Core and implementing strengthened security measures, Onyx is setting a new standard for DeFi protocols in the ever-evolving crypto landscape.
